How to Increase Credit Score: 3 Fast Ways

hey what’s up guys in this video I’m
going to share three ways to increase your credit score fast hey what’s going
on this is Sam Kwak or the Kwak Brothers real estate investor and entrepreneur in
this video I’m gonna share three ways to increase your credit score ultra fast in
fact this is gonna be a start of a new video series on how to increase your
credit score how to improve your credit so that you can save money on an
interest you can get approved for HELOC or whatever goal that you have with your
credit now before we dive right into it be sure to go and hit the like button on
this video because it does help us a lot with our YouTube algorithm and if you
want to see other people and their credit score increase chances are you
want to hit the like button to get us started okay let’s dive right in and
before we do I want to make sure we break down and just and make sure you
guys understand that there are hundreds of different types of credit scores out
there I know some of you guys may have a free app like Credit Karma or credit
Sesame and a lot of times these apps tend to give you scores that the banks
may not see or banks don’t have the same scores as you may see on your free app
so we want to make sure we understand that there are hundreds of different
types of credit scores you know there’s FICO a FICO 5 FICO 9
which is the newer model Vantage 3.0 there’s national equivalency I mean
there’s so many different types of credit scores out there but the two
major credit scores that are often used is Vantage 3.0 okay and there is FICO
Fair Isaac corporation okay and most banks probably 95% of the banks are
gonna use FICO to determine your credit score as a credit scoring model vanish’d
3.0 is what you often see in Credit Karma credit Sesame so the Vantage 3.0
score is great it’s kinda it’s a good temperature gauge it kind of gives you
an idea where your credit is going to be but it’s not the most accurate way or
it’s not the same scoring model that the banks use so it’s kind of like taking
the SAT but the college that you want to go to
is looking at a CT so obviously different scoring model and you want to
be aware of that because if you improve your advantage 3.0 score but if you
don’t improve your FICO score I mean it’s kind of a you know it’s not gonna
get you where you want so with vanish 3.0 in fact go they weigh
different things differently but because what matters FICO
right I’m gonna talk about FICO more in this video mainly because that’s what
the banks eat now with FICO score majority of what counts towards a score
is how well you pay on time so the first rule is pay on time now I know this is
super duper obvious most of you guys are saying oh this is boring like I already
know what this is but it’s super crucial because we don’t learn this in high
school we don’t learn this in college maybe you do but most of us have never
learned to pay on time and you want to make sure you pay off within 30 days now
if you have a business with business credit we’re gonna talk about this in a
whole in our video you want to pay on time super duper fast now if you use for
some reason look at your credit report or you look at your your free credit
reporting app and if you see that there’s a missed payment what you can do
is you can call it you can call your credit card company or call the creditor
and find out what’s going on right there’s a way to somehow rectify it
most credit card companies are gracious enough and are generous to where they
want to work with you so that they you know they don’t report a late payment so
at one point if you’re like me I don’t know if I can make this payment or let’s
say your credit report early says that you missed a payment go ahead and give
you a credit card company a call and see what you can work out with because this
is something that most people don’t know they just think oh I’m I have a late
payment therefore I have a late payment and that’s a done deal there’s many ways
and I also talked about credit repair in just a sec but if you cannot pay on time
or if you have a record of not being able to pay on time call the company see
what you can do to rectify the situation that will be the first thing that I
would do work directly with the creditor now the second thing that contributes to
your credit score greatly and this is something that a lot of people have
issues with and I’ll use my there we go my pen okay there we go
is your utilization rate okay I know I just said something fancy there but stay
with me utilization rate has to do with how much of your credit are you using so
30% of your FICO scoring calculation uses utilization so here’s what
utilization is and utilization only factors in the variable that goes into
utilization is your revolving line of credit a revolving line of credit is
like your credit card where you can use pay back reuse pay back some home equity
line of credit some he laughs are also revolving or at least reported as or
open revolving so let’s say you have $10,000 limit credit card okay and you
have another credit card of $5,000 limit and you have another credit card that’s
the same thing $5,000 of credit card limit let’s say you have you know a
thousand dollar balance here okay zero balance here and maybe you have you know
you maxed out this credit card right here five thousand so what how the FICO
calculation works in terms your utilization it takes your thousand and
five thousand and it says you know what you have six thousand dollars of usage
out of the total limit that you have of ten thousand five thousand and five
thousand so you have twenty thousand dollars of total limit and you have six
thousand dollars of usage FICO calculation basically says you know
what this person might be using a little bit too much of credit okay if you pass
the 30% mark this is where you’re gonna start to see your score drop because
banks are starting to think well this person is awfully using a lot of credit
something must be wrong they might be in a financially distressed situation
they’re not able to pay off their their balance completely so something must be
something that might not be right with this guy or gal here ideally what you
guys want to do is keep that utilization percentage low below 30% but that also
doesn’t mean that you should keep it zero completely this is another common
myth that I see a lot with people with credit is that they believe that by
keeping their balance complete and zero that that would improve their credit
score which actually it may not and the reason why I say that is you want to
have some credit usage to at least keep your credit score up and one thing I
want to make sure backtracking explain is that credit score doesn’t mean
everything guys credit report is what actually mad
is more greatly than just your credit score so focused on improve your credit
report then your credit score will also follow and improve as well so with your
credit utilization keep it below 30% but again like I said don’t just go straight
to zero my suggestion my opinion is to keep it anywhere between one to two
percent utilization that way you show your creditors and banks and as well as
your credit bureaus that you’re using credit you are a credit user if you’re
not using credit chances are you don’t have the best credit score there’s
actually a rumor that Bill Gates have terrible credit score because he pays
everything in cash he never uses credit cards right he never needs to get a loan
this is why Bill Gates has a very low credit score because he doesn’t use
credit so you want to show to your creditors that you are using credit so
if you have a high utilization rate focus on getting that utilization rate
down as low as possible preferably less than 30% that’s what you
should be able to focus on and what you’ll notice is that when you keep when
you go from let’s say 50% utilization or 30% utilization you can expect your
credit score to go up pretty high and it’s pretty significant so do that
that’s my second tactic to go and improve your credit score fast the third
way to improve your credit fast is potentially using credit repair to get
your credit score up there pretty quickly now credit repair is a process
process of correcting rectifying and removing any inaccurate unverifiable or
untimely information that’s being reported on your credit report so
there’s a statistics out there that say that out of one out of out of all the
Americans one out of five credit reports contain an error or inaccurate
information that isn’t necessarily due to the fault of the person holding the
credit report so you may want to go look at your credit report and see any
inaccuracies or anything that’s misleading or any information that it’s
not under that’s not verifiable you want to look for those because they could
potentially be hurting your credit score more than you know so credit repair can
be done on your own there are obviously companies that you can hire to do the
credit repair for you there are some really good credit repair companies out
there be careful with the ones that ask you
upfront fee in fact that’s illegal you shouldn’t they should have been doing
that and be careful with credit card companies that guarantee you any results
because no credit repair company can ever do that so when you go into shop
for credit repair companies be mindful of those but do remember that you you
can do the credit repair yourself it’s just kind of like do you want to do your
own oil change or do you want to have a professional do your own when you go
through a credit repair process it typically involves with asking the
credit bureaus Equifax Experian TransUnion to see if the information on
their credit report is in fact verifiable its timely and accurate I
know there’s a lot of credit repair tactics that say oh you should go and
tell people who tell the credit bureaus that none of the current credit accounts
are yours which obviously you don’t want to lie so what you do want to do is send
them a letter do not ever dispute online don’t ever
start a dispute online I know there’s a there’s apps out there that lets you
dispute your in actor season and unverifiable information on your app do
not do this because when you go through an app or an online process of disputing
any item on your credit report what tends to happen is you waive your rights
to see what methods that the credit bureaus have used to verify your
information to be true you want as an American want to know what methods and
what process the credit bureaus have used to make sure that your information
on credit report is accurate verifiable and timely if you don’t then you waive
your rights and you don’t have a whole lot of option as far as your disputing
method with your credit bureaus so when you do a dispute or when you even when
you ask the credit bureaus to check on your credit report to see if it’s
accurate you want to do everything in writing and preferably you want to send
things using certified mail so a lot of times even on asking hey credit bureaus
please check out my credit report to see if it’s accurate even that in from even
that mail they’ll go ahead and update and potentially delete some inaccurate
information that’s on your credit report which could bump your credit score
abroad to be pretty quick within 30 to 60 day time window so those are three
way guys to little one is pay on time and if you don’t feel like if you don’t
know if you can pay on time or if you already have a late payment go
and call the creditors see what you can do there are many generous and gracious
ways that the credit credit credit card companies and creditors deal with
situations like this number to keep that utilization low one thing I forgot to
mention is that you can also decrease your utilization rate by also increasing
your credit limit so back to the other example and I should have explained this
thoroughly but let’s say that $10,000 credit card if you can call in or risk
request for a credit line increase from 10,000 to 15,000 but while keeping the
balance the same you can expect your utilization rate to go down because
obviously you have a lot more limit and your balance stayed the same so that’s
another way to decrease your utilization rate if you cannot absolutely make a
payment to get that utilization rate down the third way obviously is just
what I’ve talked about is credit repair you can do this on your own there is a
process to do this be smart about it or you can hire a credit repair company
it does cost a little bit of money but oftentimes it can help you remove any
inaccurate or unverifiable information from your credit report so guys those
are three ways to increase your credit score fast and those are within 30 to 60
day time period there isn’t unfortunately a magic pill to make your
credit increase SuperDuper fast don’t ever buy into products or services that
promises any sort of result sometimes they might be a scam so guys I hope this
video helped be sure to hit the subscribe button as well as hit the bell
icon so that you get notified for future videos the next video that you guys
should watch is how to build business credit so if you have businesses or are
you looking to make money through a business go ahead and check out that
video on how to build business credit SuperDuper fast

3 Replies to “How to Increase Credit Score: 3 Fast Ways”

  1. Any tips on removing a 30-day late payment. I actually tried to remove it by telling them I was on vacation. It did not work.

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